CBDT simplifies TDS rules for NRI property deals from October 1

The Central Board of Direct Taxes (CBDT) has simplified tax deducted at source (TDS) rules for resident individuals and Hindu undivided families (HUFs) buying immovable property from non-residents, effective October 1, 2026. Buyers no longer need a Tax Deduction Account Number (TAN) and can use their PAN in the revised Form 141 with a new Schedule E. The TDS payment timeline has been extended to 30 days from the end of the relevant month.

Schedule E requires detailed reporting including property address, stamp-duty value, sale consideration, seller's PAN, overseas address, and Tax Residency Certificate number. For sellers without a PAN, buyers must provide foreign tax identification details to avoid higher TDS. The TDS rate for NRI sellers remains higher at 12.5% plus surcharge and cess, compared to 1% for residents. Failure to deduct correctly can result in interest of 1% per month on the shortfall and a possible penalty equal to the shortfall amount.

Update, 2 October 2026: CNBC-TV18 (30 September) confirms the removal of the TAN requirement and the addition of Schedule E to Form 141. It adds that buyers must now disclose whether payment is made in a lump sum or instalments, and joint buyers must each file a separate form. The report also specifies that if the NRI seller lacks a PAN, the buyer must provide the seller's tax identification number from the country of residence or a unique identification number issued by the foreign government.